Work from home hits commercial real estate in Mexico


34 percent of companies in Mexico will reduce their physical space of operations for this year, derived from the economic crisis caused by the covid-19 pandemic, which has forced companies to reduce or cancel operations with their employees in their spaces physical, according to a survey applied by Vestiga consultancy.

Sergio Díaz, CEO, commented that the pressures that companies face due to the pandemic and their economic performance are leaving them no options.

The manager mentioned that among the companies that will reduce their physical spaces in 2021, 41 percent will do so up to 10 percent of the total they occupy today and 31 percent up to a quarter of the total space they use.

1.3 millones de metros cuadrados de oficinas están vacíos en la CDMX
1.3 million square meters of offices are empty in CDMX

Occupancy had a historic drop during 2020. In the last quarter, only one corporate building opened its doors in the entire capital of the country.

In Mexico City, a metropolis characteristic for its tall buildings and wide job offer, especially in corporate corridors such as Reforma, Santa Fe, and Insurgentes, the opening of offices practically stopped during the last months of 2020.

He said that much will depend on the size of the companies, while only 6 percent of the large ones will reduce their spaces to a maximum of 10 percent, 55 percent of them will physically compact up to 33 percent.

He pointed out that these data give an idea of ​​the size of the challenge that the Mexican real estate industry will face with regard to spaces for sale and leasing, for operations and business administration, and not only in the short term, since “in addition to the difficult Economic circumstances that the pandemic crisis has brought with it, but new practices such as the so-called home office and the digital transformation of companies also set a clear pattern that is leading to a profound change in the market, which is translating into a lower structural demand for spaces in the long term ”.

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The survey was applied by telephone among CEOs of companies in the country, in the period from January 5 to 22, 2021.

Vestiga Consultores identified that the trends in the real estate market (rent/acquisition of spaces) for Mexican companies became very negative: while in 2019 only 4 percent of them decreased their spaces, last year that figure reached 28 percent of the Business. In that sense, only 5 percent of companies increased their physical spaces in 2020 compared to 16 percent the previous year.

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Mexico Daily Post